Medicaid rates for behavioral health increasing
Medicaid expansion, a decade-in-the-making measure that is expected to provide health insurance to more than 600,000 low-income North Carolinians, will take effect in less than two weeks.
But the coverage created by expansion is only useful if eligible residents have access to health care providers that accept Medicaid. That’s particularly true for people looking for mental health care, which has been in even higher demand since the COVID-19 pandemic.
Behavioral health providers of all types across the state— but particularly mental health practitioners — have complained for years that they are not adequately reimbursed for services covered by the government-funded program. In fact, they often lose money by treating Medicaid patients, and that has prompted an exodus of providers from the program.
The new rates announced Wednesday by DHHS will apply to most Medicaid-covered treatments for mental health and substance use disorder. They will also apply to services for patients with intellectual and developmental disabilities, along with services for patients living with traumatic brain injury.
In an interview with
“It’s a huge investment in our provider community,” he said. “It’s a huge investment in increasing the amount of provider workforce, and it’s going to open up the tap and access for people who so desperately need it.”
Behavioral health providers, he added, couldn’t “stay in business on the rates that were being paid.”
“We’re in a situation where we hear all the time every single day that we don’t have providers,” state Sen.
Under the current fee schedule, facilities are paid less than
“You can have a child in the ED and you will get
Psychiatrists will also see more than double the reimbursement for psychological assessments, a process which, if done well, can take several hours, if not longer. DHHS says the new rate will pay
Psychiatric residential treatment facilities, however, will not see an increase — at least not for the time being. Kinsley said DHHS is working to establish a separate, long-term rate structure for providers in those settings.
“We didn’t do a rate increase on PRTFs right this moment because we have a different process underway [for them],” he said. “We’re trying to determine not just how do we increase their rate, but how do we pay for quality?”
Expansion approaches The rate changes were announced ahead of an anticipated surge in Medicaid enrollment in
On
The threshold is higher for people with larger households. A person with a family of four, for example, will qualify if their income is less than
The first residents expected to benefit from the expansion are those currently enrolled in so-called Medicaid family plans, which offer fewer benefits than traditional Medicaid. DHHS estimates that 300,000 family plan enrollees will be automatically upgraded to full coverage.
Kinsley said the department is making an “all hands on deck” effort to ensure that expansion is implemented as smoothly as possible. Still, he stopped short of promising a totally seamless rollout.
“I’m confident that we’re going to have a bolus of people that come forward on [
He likened the state to an Apple store “with a line down the street” waiting to buy the latest iPhone. DHHS, he said, anticipates seeing “some full waiting rooms” once expansion goes live.
But the bigger challenge, according to Kinsley, might be sustaining that excitement after the initial rush.
“While I want a really smooth
More than 2.8 million North Carolinians were enrolled in Medicaid as of October, according to data from DHHS.



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